4.2.2.6. The recording of the above purchases of supplies and materials as
expenses hindered the monitoring of the actual utilization and
affected the accuracy of these accounts in the books. The combined
amount of these accounts is significant in the FS. Inaccuracy of the
amounts would affect and misrepresent the Municipality's financial
report.
4.2.3. Non-maintenance of property ledger cards by the Accounting Office and
stock cards by the Municipal Treasurer’s Office
4.2.3.1. Section 114, Volume I of the same Manual, partly provides, thus:
“The Chief Accountant shall maintain the perpetual
inventory records comprising of Supplies Ledger Cards
(SLC) for each commodity/stock, xxx. Such ledger cards
shall contain the details of the property, plant and
equipment and livestock account in the inventory control
account in the general ledger.
The x x x Municipal Treasurer shall likewise maintain
stock cards and property cards for supplies; xxx in their
custody to account for the receipt and disposition of the
same. The balance per stock card/property cards should
always reconcile with the ledger cards of the accounting
unit. They should also reconcile with other property
records like Acknowledgement Receipt for Equipment
(ARE).”
4.2.3.2. Analysis of the inventory accounts showed that the balances of the
following accounts had not been moving for more than a year, to
wit:
Years presented in the
Account Amount
Notes to FS
Agricultural Produce for ₱ 175,500.00 2024, 2023, 2022, 2021,
Distribution 2020, 2019
Work-in-Process Inventory 258,361.60 2024, 2023, 2022, 2021, 2020
Office Supplies Inventory 445,130.00 2024, 2023, 2022, 2021,
2020, 2019, 2018, 2017, 2016
Accountable Forms, Plates, 17,737.00 2024, 2023, 2022, 2021,
and Stickers 2020, 2019, 2018, 2017, 2016
Medical, Dental, and 93,747.00 2024, 2023
Laboratory Supplies Inventory
Fuel, Oil, and Lubricants 988,283.79 2024, 2023, 2022, 2021,
Inventory 2020, 2019, 2018
Other Supplies and Materials 4,730,464.61 2024, 2023, 2022, 2021,
Inventory 2020, 2019, 2018
Total ₱6,709,224.00
37
